As a Consequence of Competitive Pressures,the Introduction of the Euro

question 106

Multiple Choice

As a consequence of competitive pressures,the introduction of the euro has led to lower prices,which translates into substantial gains for European consumers.How has this trend affected European companies?

• A)It has resulted in most European companies looking for markets elsewhere where profit margins are not wafer thin.
• B)It has produced long-run gains in the economic efficiency of companies because firms were forced to look for ways to reduce their production costs.
• C)It has led to large-scale bankruptcies as companies found themselves unable to compete in a low margin scenario.
• D)It has led to an influx of even cheaper imports from manufacturing hubs such as China and South East Asia.

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Definitions:

Early Industrial

Referring to the period or stage of development where societies transition from agrarian to industrial economic activities.

Positive Checks

Mechanics that increase mortality rate and decrease population size, as per Thomas Malthus, including famine, war, and disease.

Thomas Malthus

An English economist and demographer known for his theory that population growth would outpace agricultural production, leading to widespread famine and hardship.

Pestilence

A fatal epidemic disease, particularly bubonic plague.